The dollar and interest rates.

In some ways, the Obama regime is a rerun of Jimmy Carter's presidency, except that the results are worse. The tripod on which the presidency of Jimmy Carter was built was: foreign policy failure in Iran, economic stagnation and inflation.

We see the economic stagnation now, but inflation is slow to show up. Why? Because the 'mark to market' accounting rules cause the destruction of assets, so inflation's symptom (higher prices) are slow to show up. But, inflation is beginning even while we are having the stagnation. You see the inflationary trend in four ways: 1. the rise in oil pieces; 2. the rise in gold prices; 3. the drop in the value of Treasury bonds (they dropped 4 point recently) and the drop in the value of the dollar. You can see the rise in oil prices at the pump and gold is flirting with a heavy resistance price at $980/oz. How about the dollar? I will point out a couple of things about the graphic that shows the value of the dollar. First, note that the dollar had rallied strongly in o8 into 09 until the intentions of the Obama regime became clear. Then it went into a decline. The fact that the 50 day moving average went above the 200 day moving average is NOT a golden cross for the dollar, because the MACD (lower graph) remains negative (the black line remains under the red line). Note that such a trend continues for a couple of months, so the decline of the dollar will continue. Furthermore, the crossing of the averages occurs because of an anomaly in how recent prices affect the averages: the 50 day moving average is topping out, but is still effected by the end of the rise in the dollar, while the 200 day moving average is dropping, because of the recent steep drop. The upper graph shows that the dollar is not oversold (is not under the lower line) so when the dollar does drop below the lower line, it will have a hard time to rally. If we look at the chart of the dollar calculated on a daily basis, we see the opposite of the golden cross, i. e. the 50 day moving average drops below the 200 day moving average.

The dollar will drop much further and will be replaced as a world reserve currency. Then economic stagnation and inflation will accelerate.

What to do in the meantime? Timing is important. Stay in stocks now, but sell all bonds and treasuries. These will lose value. Have a few gold and silver coins, gold-mining stocks.

Those green shoots claims.

The Obama regime claims that it has stabilized the economy and that a recovery is just around the corner. The latest and breathless claim is that initial unemployement claims have dropped a lot more than expected. When you look at the numbers, we find that the drop is in INITIAL claims and it is still above a half million more unemployed a month. So, unemployement has risen in every month since Obama was elected, especially after he became the alleged President. With the prospect of increasing taxes, difficulty of getting financing and the coming upsurge of energy costs if the Senate passes the Cap and Tax bill, businesses are laying off people in droves. There is no cure for the fungus of ObamaSocialism untill we have a Conservative Congress.

How to deal with nuclear proliferation.

Rogue regimes are trying to build nuclear weapons all over the world. The source of the cancer is N Korea that has shown that a small, backward impoverished nation can build a nuclear bomb and the missiles to deliver them. N Korea is also selling its knowledge and materials to Burma, Syria and even Iran.

The Israelis have taken out the Syrian facility, going against the Russian anti-aircraft facilities that were supposedly impenetrable. The Syrians did not know what hit them.

The US is also preparing methods to deal with nuclear installations that are buried deep in the earth. We had a bunker buster bomb, the BLU that was used agains Saddam. A new bomb is in the making, called the Massive Ordnance Penetrator, or MOP. This bomb is 10 times more powerful than the BLU, weighs 15 tons and carries 5,300 lbs explosive. It will deal with bunkers buried 200 feet deep. We can give a couple to Israel.

Here is a picture of the effect of the BLU:

White House sets up Informants Network.

The White House is creating an increasingly chilly political environment. The latest shoe of the centipede to fall is the creation of an Informants Network, where Obamabots are urged to report on citizens sending about emails that carry "fishy" stories about the Healthcare bill before Congress. The last time I saw such a network was in Hungary when the Communists took over. Adding to this obvious attempt to intimidate is the charge by Barbara Boxer that opponents of the bill are trying to hurt the President, that they are organized and represent elements bent on hurting the Country. Nancy Pelosi has gone as far as charging that opponents at Town Hall meetings carry swastikas.

For the record:
1. The health care bill is aimed at bankrupting insurance companies so we are all forced into the government plan. So say a couple of Dem House members;
2. Barak Obama did say that he wants a single payer, government run insurance, so he is lieing now when he says that we can keep the insurance we have;
3. The govt plan does plan to ration health care. It is in the bill.
4. The government plan intends to make cost savings by denying some care to seniors and give them counseling about ending their lives.

These are not "fishy" stories, but all of them documented.

The case for a coming economic doom.

It is interesting how almost every point of the compass forecasts doom for the US economy and the dollar. Chinese soothsayers, economists not in the employ of the Obamabots, several pundits I read, the cycle theories of Uncommon Wisdom, the Rev Wilkerson and his prophetic visions from God and my own visions based on history, economic theory, etc. We do not know exactly when it comes (between now and 2013) or even how it will come, but we know it is coming.

We know that a Conspiracy in the banking world has put us on the skids in Sep 2008 and we know that they are still in power. Seeking Alpha paints a truly scary vision of the next bubble being formed as I write this; a bubble the bursting of which the cycle theory forecasts for 2010. I have collected the graphic from Seeking Alpha.

http://ragingbull.quote.com/mboard/boards.cgi?board=CLB01354&read=821

The size of the bubble is estimated as one quadrillion dollars. This amount will devastate the world, certainly us and kill the currency. Prayers are really in order, because Babylon is about to burn.

Is the economy really recovering?

One of the easiest way to answer this question is to look at rail transport, because goods and commodities travel by rail. There is a web site that tracks traffic on the rail in 4 different ways and also tracks the rail traffic on each carrier. Whichever way you look at the data, the conclusion is clear: there is no significant recovery. NOTE that rail traffic fell off precipitously in Q4 of last year, after the FED engineered the sequestering of bank funds (already reported in an earlier post). The website that reports on rail traffic in more detail is:

http://railfax.transmatch.com/

What of the recently reported increase in consumer spending? The 0.4% rise in June may be due to the rise in gasoline prices.There is economic recovery in Asia but not here. Remember! The Obamabots benefit from continued economic crisis, so the last thing they want is for the downturn to end. Remember the Joker! As long as we are in economic stress, Obama can offer "solutions." It was and is a Munchausen by proxy insanity.

Obama caricature brilliant.

The Joker was a fictional character in Batman. The Joker caused all manner of cises in order to take over Gotham City, just as Obama tries to take over the United States. It is a brilliant satire because it is based on the truth.